Attractive stocks have exceptional fundamentals. In the case of ZOO Digital Group plc (LON:ZOO), there's is a company with impressive financial health as well as an optimistic growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, read the full report on ZOO Digital Group here.
Exceptional growth potential with adequate balance sheet
ZOO is an attractive stock for growth-seeking investors, with an expected earnings growth of 62% in the upcoming year. This growth in the bottom-line is bolstered by an impressive top-line expansion of 52% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. ZOO's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that ZOO has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. ZOO seems to have put its debt to good use, generating operating cash levels of 0.39x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For ZOO Digital Group, I've put together three key aspects you should look at:
- Historical Performance: What has ZOO's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is ZOO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ZOO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ZOO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.